Community Bank System, Inc. (CBU): Business Model Canvas [Jan-2025 Mise à jour]

Plongez dans le plan stratégique de Community Bank System, Inc. (CBU), une institution financière dynamique qui transforme les services bancaires traditionnels à travers des approches innovantes et des stratégies axées sur la communauté. Cette toile complète du modèle commercial révèle comment CBU exploite les partenariats locaux, l'infrastructure numérique avancée et les solutions bancaires personnalisées pour créer une valeur unique pour divers segments de clients dans plusieurs États. En mélangeant les prouesses technologiques avec un service axé sur les relations, CBU a conçu un modèle robuste qui les positionne comme une puissance financière avant-gardiste dans le paysage bancaire concurrentiel d'aujourd'hui.

Community Bank System, Inc. (CBU) - Modèle d'entreprise: partenariats clés

Entreprises locales et clients commerciaux

En 2023, Community Bank System, Inc. a maintenu des partenariats stratégiques avec environ 2 500 entreprises locales à New York et aux États environnants. Le portefeuille de clients commerciaux de la banque comprenait:

Secteur des affaires	Nombre de partenariats	Exposition totale au crédit
Fabrication	425	312 millions de dollars
Soins de santé	350	275 millions de dollars
Agriculture	275	189 millions de dollars

Fournisseurs d'assurance et partenaires de services financiers

Les principaux partenariats de services financiers comprennent:

• Groupe mutuel CUNA pour les produits d'assurance
• Fiserv pour les services de traitement des paiements
• Visa et MasterCard pour les réseaux de cartes de crédit / débit

Vendeurs technologiques pour les solutions bancaires numériques

Partenaire technologique	Service fourni	Investissement annuel
Jack Henry & Associés	Plateforme bancaire de base	4,2 millions de dollars
Temenos	Infrastructure bancaire numérique	2,7 millions de dollars

Organisations de développement économique régional

Le système de banque communautaire collabore avec:

• Corporation de développement économique de l'État de New York
• Conseil régional de développement économique du centre de New York
• Chapitres locaux de la Chambre de commerce dans 12 comtés

Compliance réglementaire et cabinets de conseil financier

Les partenariats de conformité comprennent:

• Wolters Kluwer pour les solutions de conformité réglementaire
• Baker Tilly pour les services de conseil financier
• AML Droitsource pour un soutien anti-blanchiment

Investissement total de partenariat annuel: 18,5 millions de dollars

Community Bank System, Inc. (CBU) - Modèle d'entreprise: activités clés

Services de vente au détail et commerciaux

Au quatrième trimestre 2023, Community Bank System, Inc. exploite 228 bureaux bancaires à New York, en Pennsylvanie et au Vermont. Le total des actifs déclarés à 16,9 milliards de dollars avec des dépôts totaux de 14,2 milliards de dollars.

Catégorie de service bancaire	Volume de transaction annuel	Revenus générés
Comptes de chèques personnels	372 000 comptes	48,3 millions de dollars
Comptes de chèques d'entreprise	86 500 comptes	37,6 millions de dollars

Gestion de la plate-forme bancaire numérique

Plateforme de banque en ligne et mobile desservant 245 000 utilisateurs numériques actifs avec un taux d'adoption d'applications mobiles à 92%.

• Transactions bancaires mobiles: 3,2 millions par mois
• Investissement de plate-forme numérique: 7,2 millions de dollars en 2023
• Budget d'infrastructure de cybersécurité: 4,5 millions de dollars par an

Évaluation de l'origine du prêt et du crédit

Portfolio total des prêts: 12,7 milliards de dollars en décembre 2023.

Type de prêt	Volume total	Taux d'intérêt moyen
Prêts commerciaux	6,3 milliards de dollars	6.75%
Hypothèques résidentielles	4,9 milliards de dollars	5.85%
Prêts à la consommation	1,5 milliard de dollars	7.25%

Services d'investissement et de gestion de la patrimoine

Actif sous gestion: 3,6 milliards de dollars avec 42 000 clients de gestion de patrimoine.

• Valeur du compte moyen: 85 700 $
• Revenus de gestion de la patrimoine: 62,4 millions de dollars en 2023

Opérations de conformité et de gestion des risques

Staffing du département de la conformité: 87 professionnels à temps plein.

Zone de conformité	Budget opérationnel annuel	Résultats de l'audit réglementaire
Conformité réglementaire	5,3 millions de dollars	Zéro violations majeures
Gestion des risques	4,1 millions de dollars	99,8% Efficacité d'atténuation des risques

Community Bank System, Inc. (CBU) - Modèle d'entreprise: Ressources clés

Réseau de succursale étendue

Au quatrième trimestre 2023, Community Bank System, Inc. exploite 226 bureaux bancaires au total dans plusieurs États, principalement à New York, en Pennsylvanie et au Vermont.

État	Nombre de branches
New York	162
Pennsylvanie	38
Vermont	26

Infrastructure bancaire numérique

Métriques bancaires numériques:

• Utilisateurs bancaires en ligne: 287 500
• Téléchargements d'applications bancaires mobiles: 215 300
• Volume de transactions numériques: 4,2 millions de transactions mensuelles

Ressources de capital humain

Total des employés: 2 153 au 31 décembre 2023

Catégorie des employés	Nombre d'employés
Professionnels à temps plein	1,892
Employés à temps partiel	261

Stabilité financière

Mesures de ressources financières:

• Actif total: 13,4 milliards de dollars
• Équité totale: 1,65 milliard de dollars
• Ratio de capital de niveau 1: 12,3%

Systèmes technologiques

Investissement technologique: 24,7 millions de dollars dans l'infrastructure technologique pour 2023

Catégorie d'investissement technologique	Allocation
Cybersécurité	8,3 millions de dollars
Plate-forme bancaire numérique	6,9 millions de dollars
Systèmes bancaires de base	9,5 millions de dollars

Community Bank System, Inc. (CBU) - Modèle d'entreprise: propositions de valeur

Solutions bancaires personnalisées pour les communautés locales

Au quatrième trimestre 2023, Community Bank System, Inc. dessert 45 comtés à New York, en Pennsylvanie et au Vermont avec 237 emplacements de succursales totales. La banque maintient 14,2 milliards de dollars d'actifs totaux et fournit des services bancaires localisés à 1,3 million de clients.

Catégorie de service	Nombre d'offres	Pénétration du marché
Produits bancaires personnels	37 produits distincts	82% de part de marché locale
Banque des petites entreprises	24 solutions spécialisées	Couverture du marché régional de 68%

Taux d'intérêt concurrentiels et produits financiers

Taux d'intérêt pour les produits clés à partir de janvier 2024:

• Comptes d'épargne personnels: 3,75% apy
• Comptes de marché monétaire: 4,25% apy
• Taux de CD à 12 mois: 4,60% APY
• Home Equity Lignes de crédit: à partir de 7,25% de taux variable

Expériences complètes des banques numériques et mobiles

Statistiques de la banque numérique pour 2023:

Plate-forme numérique	Adoption des utilisateurs	Volume de transaction
Application bancaire mobile	218 000 utilisateurs actifs	3,7 millions de transactions mensuelles
Plateforme bancaire en ligne	276 000 utilisateurs enregistrés	4,2 millions de transactions mensuelles

Approche de service client basé sur les relations

Métriques du service client pour 2023:

• Taux de rétention de clientèle moyen: 87,3%
• Score de satisfaction du client: 4.6 / 5
• Durée moyenne de la relation client: 9,2 ans

Conseils financiers sur mesure pour les entreprises et les particuliers

Répartition des services de conseil financier des entreprises et individuelles:

Service consultatif	Nombre de clients servis	Actifs consultatifs totaux
Conseil des petites entreprises	3 750 clients actifs	620 millions de dollars gérés
Gestion de la richesse personnelle	12 400 clients individuels	2,3 milliards de dollars sous gestion

Community Bank System, Inc. (CBU) - Modèle d'entreprise: relations avec les clients

Gestion de compte personnalisée

Au quatrième trimestre 2023, Community Bank System, Inc. maintient 232 000 clients bancaires personnels et 18 500 relations bancaires d'entreprise.

Segment de clientèle	Nombre de clients	Valeur moyenne du compte
Banque personnelle	232,000	$47,300
Banque d'affaires	18,500	$253,700

Banque de relations axée sur la communauté

Community Bank System opère dans 5 États avec 242 succursales, desservant des marchés locaux à New York, en Pennsylvanie, au Vermont, au Massachusetts et au Connecticut.

• Taux de rétention de clientèle moyen: 87,4%
• Pénétration du marché local: 62% dans les zones de service primaires
• Investissement communautaire en 2023: 4,2 millions de dollars

Support client multicanal

Canal de support	Interactions mensuelles	Temps de réponse moyen
Bifurquer	78,500	12 minutes
Banque en ligne	214,000	3 minutes
Application mobile	186,000	2 minutes
Support téléphonique	45,200	7 minutes

Plates-formes de libre-service numériques

En 2024, le taux d'adoption des banques numériques est de 72,3% parmi les clients.

• Utilisateurs de la banque mobile: 186 000
• Utilisateurs bancaires en ligne: 214 000
• Volume de transaction numérique: 3,6 millions par mois

Services d'éducation financière et de conseil réguliers

Service consultatif	Nombre de sessions	Participation moyenne des clients
Planification de la retraite	4,200	67%
Ateliers d'investissement	2,800	53%
Séminaires sur les petites entreprises	1,600	42%

Community Bank System, Inc. (CBU) - Modèle d'entreprise: canaux

Réseau de succursale physique

Depuis 2023, Community Bank System, Inc. exploite 229 succursales physiques à New York, en Pennsylvanie et au Vermont.

État	Nombre de branches
New York	173
Pennsylvanie	36
Vermont	20

Site Web de banque en ligne

La plate-forme bancaire en ligne de la banque dessert environ 138 000 utilisateurs de banque numérique actifs au quatrième trimestre 2023.

• URL du site Web: www.communitybankna.com
• Volume des transactions numériques: 2,4 millions de transactions en ligne mensuelles
• Sécurité du site Web: cryptage 256 bits

Application bancaire mobile

L'application mobile de Community Bank System compte 95 000 utilisateurs mensuels actifs en 2023.

Plate-forme	Note de l'App Store	Télécharger le nombre
Apple App Store	4.3/5	62,000
Google Play Store	4.1/5	53,000

Services bancaires téléphoniques

La banque exploite un centre d'appels de service à la clientèle gantant environ 78 000 interactions client tous les mois.

• Heures de service à la clientèle: 7h00 à 20h00 HNE
• Temps d'attente d'appel moyen: 3,2 minutes
• Prise en charge des banques téléphoniques: services automatisés 24/7

Réseau ATM

Le système de banque communautaire maintient 342 emplacements ATM dans ses états opérationnels.

Type de guichet automatique	Nombre de machines	Volume de transaction
ATM appartenant à des banques	242	1,1 million de transactions mensuelles
ATM du réseau partagé	100	420 000 transactions mensuelles

Community Bank System, Inc. (CBU) - Modèle d'entreprise: segments de clientèle

Petites et moyennes entreprises locales

Au quatrième trimestre 2023, le système de banque communautaire dessert environ 15 200 petites et moyennes entreprises de New York et des États environnants.

Segment d'entreprise	Nombre de clients	Taille moyenne du prêt
Commerces de détail	6,750	$275,000
Services professionnels	4,500	$385,000
Fabrication	2,350	$625,000
Entreprises agricoles	1,600	$412,000

Clients bancaires de détail individuels

Total des clients bancaires au détail: 237 500 au 31 décembre 2023.

• Comptes de chèques personnels: 142 300
• Comptes d'épargne personnels: 95 200
• Âge du client moyen: 42 ans
• Utilisateurs de la banque numérique: 68% des clients de détail

Clients commerciaux et d'entreprise

Le segment bancaire commercial comprend 2 750 clients d'entreprise avec un portefeuille de prêts commerciaux total de 3,2 milliards de dollars en 2023.

Segment de l'entreprise	Nombre de clients	Revenus annuels moyens
Entreprises de marché intermédiaire	1,850	50 M $ - 500 M $
Grandes entreprises	900	500 M $ - 2 milliards de dollars

Individus à haute nette

Le segment de la gestion de patrimoine dessert 4 300 clients à haute teneur en matière de données avec un actif total sous gestion de 1,7 milliard de dollars en 2023.

• Valeur nette moyenne du client: 3,2 millions de dollars
• Clients avec des portefeuilles d'investissement de plus de 5 millions de dollars: 1 200
• Revenus de frais de gestion de patrimoine: 42,5 millions de dollars

Gouvernement local et entités municipales

Le segment bancaire municipal comprend 215 clients locaux et clients du secteur public avec un portefeuille d'obligations municipales total de 780 millions de dollars.

Segment municipal	Nombre de clients	Obligations municipales totales
Gouvernements de comté	47	320 millions de dollars
Municipalités de la ville	112	280 millions de dollars
Districts scolaires	56	180 millions de dollars

Community Bank System, Inc. (CBU) - Modèle d'entreprise: Structure des coûts

Succursale des dépenses opérationnelles

Pour l'exercice 2023, Community Bank System, Inc. a déclaré les dépenses opérationnelles suivantes:

Catégorie de dépenses	Montant ($)
Coûts de loyer et d'occupation	24,500,000
Services publics	5,200,000
Entretien et réparations	3,750,000

Maintenance de technologie et d'infrastructure

Les coûts d'infrastructure technologique pour 2023 comprenaient:

• Maintenance des systèmes informatiques: 18 300 000 $
• Investissements en cybersécurité: 7 500 000 $
• Licence de logiciel: 4 200 000 $
• Infrastructure réseau: 6 800 000 $

Salaires et avantages sociaux des employés

Répartition de la compensation pour 2023:

Catégorie de compensation	Montant ($)
Salaires de base	152,000,000
Bonus de performance	22,500,000
Avantages sociaux	35,600,000
Contributions à la retraite	18,900,000

Coûts de conformité réglementaire

Dépenses de conformité pour 2023:

• Département juridique et de conformité: 12 500 000 $
• Systèmes de rapports réglementaires: 3 200 000 $
• Frais d'audit et de conseil: 5 700 000 $

Frais de marketing et d'acquisition des clients

Répartition des dépenses de marketing pour 2023:

Canal de marketing	Montant ($)
Marketing numérique	8,600,000
Publicité traditionnelle	4,300,000
Campagnes d'acquisition de clients	6,200,000
Parrainages communautaires	1,500,000

Community Bank System, Inc. (CBU) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts des prêts et des investissements

Pour l'exercice 2023, Community Bank System, Inc. a déclaré un revenu net d'intérêts de 503,8 millions de dollars. Le portefeuille de prêts de la banque a généré 456,2 millions de dollars de revenus d'intérêts, tandis que les titres d'investissement ont contribué 47,6 millions de dollars.

Source de revenus	Montant ($ m)	Pourcentage du revenu des intérêts totaux
Prêts commerciaux	267.3	52.3%
Prêts à la consommation	188.9	37.0%
Titres d'investissement	47.6	9.3%
Autres revenus d'intérêt	10.0	1.4%

Frais de service bancaire

En 2023, Community Bank System, Inc. a généré 87,5 millions de dollars de frais de service et de frais.

• Frais de maintenance du compte: 32,4 millions de dollars
• Frais de transaction: 28,6 millions de dollars
• Frais de découvert: 15,7 millions de dollars
• Autres frais de service bancaire: 10,8 millions de dollars

Services de gestion de la patrimoine et de consultation

La division de gestion de patrimoine de la banque a généré 65,2 millions de dollars de revenus pour 2023.

Catégorie de service	Revenus ($ m)
Avis d'investissement	38.7
Services de confiance	22.5
Planification financière	4.0

Revenus de produits hypothécaire et de prêt

Les produits hypothécaires et prêts ont contribué 142,6 millions de dollars aux revenus de la banque en 2023.

• Origination hypothécaire résidentielle: 85,3 millions de dollars
• Prêts hypothécaires commerciaux: 42,7 millions de dollars
• Origination du prêt personnel: 14,6 millions de dollars

Frais de maintenance de transaction et de compte

Les frais de maintenance des transactions et des comptes ont totalisé 60,9 millions de dollars en 2023.

Type de frais	Montant ($ m)
Frais de transaction ATM	22.3
Frais de transfert de fil	18.6
Frais de maintenance du compte	12.4
Autres frais de transaction	7.6

Community Bank System, Inc. (CBU) - Canvas Business Model: Value Propositions

Community Bank System, Inc. offers a value proposition built on its structure as a diversified financial services company, not just a bank.

The company formally organizes itself around four main business lines:

• Banking services
• Employee benefit services
• Insurance services
• Wealth management services

This diversification means that operating noninterest revenues from these fee-income businesses contributed to a 9.0% increase year-over-year in Q1 2025. Specifically, the OneGroup NY, Inc. subsidiary is recognized as a top 68 U.S. insurance agency.

The core banking operation, Community Bank, N.A., is among the country's 100 largest banking institutions, holding over $16 billion in assets. As of late 2025, the bank operates approximately 200 customer facilities across its footprint. For the third quarter of 2025, Community Bank System, Inc. reported revenues of $207.1 million and GAAP Earnings Per Share (EPS) of $1.04.

Financial stability is underscored by a long history of returning capital to shareholders. Community Bank System, Inc. has a 28-year track record of consecutive dividend increases as of the third quarter of 2025. The most recently declared quarterly cash dividend was $0.47 per share, which results in an annualized dividend payout of $1.86. The forward dividend yield as of December 5, 2025, was 3.21%, with a reported payout ratio of 45.68%.

The commitment to personalized, relationship-focused community banking is being actively expanded in key growth markets. Through the acquisition of seven branches from Santander Bank, N.A., completed in November 2025, Community Bank is solidifying its presence in Pennsylvania's Greater Lehigh Valley. This strategic move brings the total retail locations in the Greater Lehigh Valley to 12, securing a Top 5 market position in that region. The acquired branches brought approximately $553.0 million in customer deposit accounts and $33 million in branch-related loans.

Comprehensive wealth management and trust administration is delivered through the Nottingham Financial Group operating unit.

Here is a summary of key figures supporting the value proposition as of late 2025:

Metric	Value / Position	Source Context
Total Business Lines	4 (Banking, Employee Benefit, Insurance, Wealth Management)	Diversification structure
Consecutive Dividend Increases	28 years as of Q3 2025	Financial Stability Track Record
Latest Declared Quarterly Dividend	$0.47 per share	Financial Stability / Shareholder Return
Annualized Dividend Payout	$1.86	Financial Stability / Shareholder Return
Banking Subsidiary Asset Size	Over $16 billion	Community Banking Scale
Greater Lehigh Valley Retail Locations (Post-Acquisition)	12	Regional Market Position
Greater Lehigh Valley Market Rank	Top 5	Regional Market Position
Deposits Acquired in Lehigh Valley Deal	Approx. $600 million / $553.0 million	Regional Market Expansion

Community Bank System, Inc. (CBU) - Canvas Business Model: Customer Relationships

You're looking at how Community Bank System, Inc. (CBU) maintains its connections with its diverse customer base as of late 2025. The strategy blends personalized service with digital efficiency, grounded in its regional footprint.

Dedicated relationship managers for commercial and high net worth clients

Community Bank System, Inc. supports its commercial and high net worth segments through specialized attention, though specific headcounts for dedicated relationship managers aren't publicly itemized in the latest reports. The focus on these segments is evident in the overall loan and revenue performance. For instance, total ending loans reached $10.67 billion by the third quarter of 2025, with growth noted in the business lending portfolio.

High-touch, in-person service at branch locations

The physical presence remains central to the high-touch model. Community Bank, N.A., the banking subsidiary, operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts. This network supports the bank's standing as one of the country's 100 largest banking institutions, with total assets exceeding $16 billion as of the first quarter of 2025.

Automated self-service via online and mobile banking platforms

While the latest 2025 digital adoption rates aren't published, the trend shows a move toward automation. Data from 2023 indicated that digital channel adoption accounted for 62.3% of total customer interactions, with traditional branch transactions at 37.7%. The bank's focus on digital platforms helps manage service delivery alongside its physical footprint.

Retaining staff from acquired branches to ensure service continuity

A concrete example of ensuring service continuity was the completion of the acquisition of seven former Santander Bank, N.A. branches in the Allentown, Pennsylvania area in November 2025. This type of strategic growth is managed with an emphasis on integrating personnel to maintain established customer relationships.

Long-term, trust-based relationships with municipal customers

Municipal customers are a significant source of stable funding. Public funds deposits totaled $2.341 billion at the end of the first quarter of 2025, representing an increase of $408.5 million from one year prior. Total ending deposits for the bank were $14.06 billion by the third quarter of 2025. The bank has also increased its net interest income for 18 consecutive years, signaling consistent, trust-based financial partnership.

Here's a quick look at key operational and financial metrics that underpin these customer relationships as of the latest reported periods in 2025:

Metric	Value/Amount	Reporting Period	Source Context
Total Assets (Banking Subsidiary)	Over $16 billion	Q1 2025	Banking subsidiary size
Customer Facilities (Branches)	Approximately 200	Late 2025	Physical service presence
Total Ending Deposits	$14.06 billion	Q3 2025	Overall deposit base size
Public Funds Deposits	$2.341 billion	Q1 2025	Municipal customer funding level
Total Ending Loans	$10.67 billion	Q3 2025	Lending portfolio size
Net Interest Income (NII) Consecutive Growth	18 consecutive years	Through Q1 2025	Longevity of core banking relationship strength

The bank's relationship strategy relies on this physical scale combined with a growing digital capability. You can see the focus on core banking stability through the consistent NII growth, which is the bedrock for all other customer interactions.

Finance: draft 13-week cash view by Friday.

Community Bank System, Inc. (CBU) - Canvas Business Model: Channels

You're looking at how Community Bank System, Inc. gets its value propositions to its customers. It's a mix of old-school physical presence and modern digital reach, plus specialized national services.

The core physical network for Community Bank, N.A. involves a significant footprint across four states. As of 2025, the company reported steady 207 customer facilities. This network spans Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts. The company is actively managing this footprint; for instance, in late 2025, Community Bank, N.A. completed the acquisition of seven Santander Bank, N.A. branches in the Allentown, Pennsylvania area. This single acquisition added approximately $553.0 million in customer deposit accounts.

The digital channel is essential for modern banking, even for a regionally focused institution like Community Bank System, Inc. While CBU-specific digital adoption rates aren't public, industry trends for 2025 show that a significant majority of consumers-77 percent-prefer to manage their bank accounts through a mobile app or a computer. Furthermore, 96 percent of consumers rate their mobile and online banking experience as "excellent," "very good" or "good." Community Bank System, Inc. supports this with its digital banking for both retail and business clients, operating alongside its physical locations, which, as of Q3 2025, supported total assets of over $16 billion.

Community Bank System, Inc. uses specialized subsidiaries to reach national customer segments through dedicated sales forces and direct channels. This is where the diversification really shows up in the channel strategy.

Channel Component	Subsidiary/Description	Latest Available Metric/Ranking
National Sales Force	Benefit Plans Administrative Services, Inc. (BPAS)	Provides services to customers on a national scale.
Direct-to-Consumer Insurance	OneGroup NY, Inc.	Ranked as a top 68 U.S. insurance agency as of Q3 2025.
Non-Banking Revenue Contribution	Insurance Services & Employee Benefit Services	Generated $56.7 million in operating noninterest revenues in Q1 2025.

The insurance and employee benefit services are a key part of the non-interest revenue stream, which hit a record in Q2 2025 at $199.3 million in total revenue. To build out these non-bank channels, Community Bank System, Inc. invested approximately $20 million in cash acquisitions across its Employee Benefit Services and Insurance Services businesses during the 2024 fiscal year.

For transactional access, the bank relies on its own infrastructure and external partners.

• ATM network and third-party payment processors support customer transactions.
• The bank's banking subsidiary, Community Bank, N.A., operates its own ATM network alongside its customer facilities.
• The overall company reported total operating revenues of $207.05 million for the third quarter of 2025.

It's a multi-pronged approach; you need the local branch for trust, the digital for convenience, and the specialized units for national scale.

Community Bank System, Inc. (CBU) - Canvas Business Model: Customer Segments

You're looking at the core groups Community Bank System, Inc. (CBU) serves across its diversified model. This isn't just about checking accounts; it's about distinct client needs met by specialized business lines.

Retail consumers in Upstate New York and Northeastern Pennsylvania form the bedrock of the traditional banking franchise. Community Bank, N.A., the banking subsidiary, operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts. This physical presence supports the primary retail relationship.

Small to mid-sized commercial businesses are served through the business lending portfolio. Ending loans showed growth in the business lending segment in Q1 2025, partially offsetting a decrease in consumer indirect lending. Further loan growth in Q3 2025 was reflective of organic growth in the overall business lending portfolio.

Institutional and municipal customers provide a key source of stable, low-cost funding. This segment is characterized by long-term relationships, not 'hot money.' The deposit base structure is heavily weighted toward core funding:

• Non-interest-bearing and low-rate checking and savings accounts represent almost two-thirds of total deposits.
• Total deposits stood at $13.89 billion at the end of March 2025.
• Public funds deposits reached $2.341 billion at the end of Q1 2025.
• The municipal deposit business was nearing $2 billion in outstanding balances as of early 2025.

High net worth individuals seeking wealth management services are served by the Wealth Management Services segment. This group relies on Community Bank Wealth Management for comprehensive financial planning and trust administration. The segment shows strong profitability metrics:

• Wealth Management Services revenues increased by $0.7 million year-over-year in Q1 2025.
• The segment posted a pretax tangible return of 48% in Q3 2025.

National clients for employee benefits and trust services are addressed through the Employee Benefit Services segment, managed by Benefit Plans Administrative Services, Inc., which serves customers on a national scale. This segment also contributes meaningfully to fee income:

• Employee Benefit Services revenues increased by 2.9% from the prior year's fourth quarter in Q1 2025.
• The pretax tangible return for Employee Benefit Services was 62% in Q3 2025.

Here's a quick look at how the non-banking segments are performing, which directly relates to serving the high-net-worth and national clients:

Business Segment	Metric	Latest Reported Value (2025)
Wealth Management Services	Revenue Increase (YoY Q1)	$0.7 million
Wealth Management Services	Pretax Tangible Return (Q3)	48%
Employee Benefit Services	Revenue Increase (QoQ Q1)	2.9%
Employee Benefit Services	Pretax Tangible Return (Q3)	62%
Insurance Services	Revenue Increase (YoY Q1)	27.8%

The overall banking subsidiary, Community Bank, N.A., is among the country's 100 largest banking institutions, with over $16 billion in assets. The loan-to-deposit ratio at the end of Q3 2025 was 76.5%.

Community Bank System, Inc. (CBU) - Canvas Business Model: Cost Structure

The Cost Structure for Community Bank System, Inc. (CBU) is heavily influenced by personnel costs, the physical footprint of its banking operations, and the fluctuating expense of funding its balance sheet. You see these costs reflected clearly in the sequential and year-over-year comparisons of non-interest expenses.

High non-interest expenses from salaries and employee benefits are a primary cost driver. For the second quarter of 2025, total noninterest expenses reached $129.1 million, up 8.5% year-over-year from $119.0 million in Q2 2024. A significant portion of this increase was attributed to personnel costs; specifically, salaries and employee benefits rose by $5.6 million, or 7.6%, year-over-year in Q2 2025. Management noted that this included merit increases.

Significant occupancy and data processing costs for 200 branches are embedded within the non-interest expense line. Community Bank, N.A. operates approximately 200 customer facilities. In Q2 2025, data processing and communication expenses increased by $1.4 million, or 9.3% year-over-year. Furthermore, Q3 2025 non-interest expenses of $128.3 million included an increase in data processing and communication expenses that featured a $1.4 million consulting expense related to a core system provider contract renegotiation.

Interest expense on deposits and borrowings, or the cost of funds, is a variable cost that CBU actively manages. The cost of funds was reported at 1.33% in Q1 2025. The bank's focus on low-cost deposits helps keep this number relatively stable, though it is subject to rate movements.

Metric	Q1 2025	Q2 2025	Q3 2025
Cost of Funds	1.33%	1.32%	1.33%
Cost of Deposits	N/A	1.19%	1.17%

The bank is actively investing in its physical presence while also streamlining its network, leading to specific costs associated with de novo branch expansion and M&A integration. As of Q2 2025, CBU had opened seven De Novo branches out of 19 planned, with 17 closures submitted to maintain a net-neutral count. De Novo branch expansion expenses were approximately $1.5 million in Q2 2025 and approximately $2.3 million in Q3 2025. Management anticipated startup costs of $3-$4 million in Q3 2025 related to this expansion. Strategically, CBU completed the acquisition of seven former Santander Bank branches in November 2025, adding approximately $553.0 million in deposits and $31.9 million in loans. Earlier in 2025, there was an expectation that a transaction would assume approximately $600 million of deposits and acquire about $33 million of loans.

Provision for credit losses (PCL) represents an allocation against potential loan losses, which fluctuates based on economic outlook and specific credit events. The provision for credit losses in Q2 2025 was $4.1 million, a sequential increase from the $6.7 million recorded in Q1 2025. For the subsequent quarter, Q3 2025, the provision increased again to $5.6 million. The Q2 2025 figure was notably higher than the $2.7 million recorded in Q2 2024.

You can see the quarterly PCL trend here:

• Provision for Credit Losses (Q1 2025): $6.7 million
• Provision for Credit Losses (Q2 2025): $4.1 million
• Provision for Credit Losses (Q3 2025): $5.6 million

Community Bank System, Inc. (CBU) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Community Bank System, Inc. (CBU), and honestly, it's built on a diversified model that goes well beyond just making loans. That mix is key to how they manage risk.

The core engine remains the interest spread. For the third quarter of 2025, the Net Interest Income (NII) from loans and investments hit $128.2 million. That figure marked the sixth consecutive quarter of NII expansion for Community Bank System, Inc.

To give you a snapshot of how the revenue streams break down, here's a look at the latest reported figures:

Revenue Stream Category	Latest Reported Period	Financial Amount
Net Interest Income (NII)	Q3 2025	$128.2 million
Total Operating Revenues	Q3 2025	$206.8 million
Operating Non-interest Revenues (Total Fee Income)	Q3 2025	Represents 38% of Total Operating Revenues
Total Non-bank Financial Services Revenues	Q1 2025	$56.7 million (New Quarterly Record)

The non-interest fee revenue is where Community Bank System, Inc. really shows its diversification. This income comes from several distinct business lines, which you need to track separately.

For the banking services portion, we see specific growth drivers. For instance, in the first quarter of 2025, the Banking-Related Operating Noninterest Revenues were up 4.7%, equating to $0.9 million, driven largely by mortgage banking activities. This is a tangible example of how the core banking operations contribute to fee income.

The non-bank segments are significant revenue contributors, providing stability when pure banking margins fluctuate. Here are the details on those specific fee incomes:

• Fee income from Employee Benefit Services, Insurance Services, and Wealth Management Services combined reached a new quarterly record of $56.7 million in the first quarter of 2025.
• For the third quarter of 2025, the total non-bank financial services noninterest revenues were reported at $54.5 million.
• Looking specifically at Wealth Management and Trust Services fees, revenue for the first nine months of 2025 grew to $27.5 million, up from $26.8 million in the prior comparable period.

The growth in the Employee Benefit Services revenue and Insurance Services revenue also contributed to the overall non-interest income increase for the first nine months of 2025. You should watch the sequential change in the non-bank revenue, as it decreased by 3.9% from the first quarter of 2025 to the third quarter of 2025.

Finance: draft Q4 2025 non-interest income breakdown by segment by next Tuesday.